Yahoo! spent the July 4 bank holiday weekend in discussions with its lead adviser, Goldman Sachs, and potential bid partners including Time Warner to defend itself from a break-up by Microsoft.
The online search engine is seeking to re-heat talks with the cable company about a possible merger with AOL, its internet arm, in a deal that could be worth as much as $10 billion (£5 billion).
Yahoo! is trying to secure some kind of deal before its shareholders meet to vote on whether to re-elect their board on August 1.
The company has sought to re-open talks after it emerged last week that Microsoft is also in talks with companies such as Time Warner to try to launch a break up bid of Yahoo!.
The software giant wants to control Yahoo!'s internet search engine so that it can compete more aggressively with Google and seize a bigger slice of the online advertising market estimated to be worth about $40 billion and set to double by 2010.
Insiders at Yahoo! insist that an offer which sought to break up the company would not work because of the difficulty in valuing its non-search business.
Jerry Yang, co-founder and chief executive of Yahoo! is threatened on two fronts in the short term.
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